Publications

Interim Findings from the Paycheck Plus Demonstration in New York City

September, 2017

Paycheck Plus offers workers without dependent children an enhanced Earned Income Tax Credit (EITC) worth up to $2,000 per year for three years (four times the current EITC for singles). Results after two years from a random assignment evaluation show that it has increased income and work rates.

Boosting the Earned Income Tax Credit for Workers Without Dependent Children

June, 2017

The Earned Income Tax Credit (EITC) promotes work and raises over six million Americans out of poverty each year. Early results from an ongoing demonstration suggest that expanding the EITC for singles, an idea with bipartisan support, is feasible and can increase employment and income while reducing poverty.

A program in Memphis and the Bronx offered cash incentives, coupled with family guidance, to poor families for meeting certain health care, education, and work milestones. The program increased income and reduced poverty, increased dental visits and health status, reduced employment somewhat, and had few effects on students’ education.

This program spent a little over a dollar to transfer one dollar in cash rewards to families who met the required benchmarks. These rewards produced positive effects on some outcomes, but left others unchanged. While the program benefited participating families, the cost to taxpayers exceeded the economic value of these effects.

Too often, programs and policies do not consider the way people actually think and behave. Behavioral science demonstrates that even small hassles create barriers that prevent those in need of services from receiving them. This infographic provides a brief overview of how the Center for Applied Behavioral Science is improving social services by making use of behavioral insights.

Funded by MetLife Foundation, this paper uses a large and unusual data set, combining administrative data provided by subprime lenders with survey and in-depth interview data, to gain a better understanding of the backgrounds, experiences, and needs of people who use online subprime small-dollar credit.

Family Rewards offered cash incentives to low-income families to reduce both current and longer-term poverty, contingent on families’ efforts to build up their “human capital” through children’s education, preventive health care, and parents’ employment. While the program produced some positive effects on some outcomes, it left many outcomes unchanged.

SaveUSA encourages low- and moderate-income people to set aside money from their tax refund for savings by awarding a 50 percent match to successful savers. After 42 months, the program had sustained its earlier effects, increasing both the percentage of individuals with nonretirement savings and the average amount of savings.

The Paycheck Plus demonstration is testing the effects of a more generous Earned Income Tax Credit-like earnings supplement for low-income single adults in New York City. This brief describes the implementation of the program during the first year and supplement receipt rates during the 2015 tax season.

Several low-cost behavioral messaging interventions boosted participant attendance at an optional informational meeting for Paycheck Plus, an earnings supplement program in New York City. This test is part of the Behavioral Interventions to Advance Self-Sufficiency project, sponsored by the federal Administration for Children and Families.